Beware the Bear-Market Rally

Lack of follow-through among retailers after good earnings from Home Depot and Wal-Mart suggests the bounce from last week's plunge won't last.

Stocks are clawing their way back from last week's abyss, helped by corporate takeovers and some decent earnings reports. But the benefit has been limited only to individual stocks affected directly by the news and hasn't carried over to their respective sectors.

That is a big problem. It suggests the bounce off last week's scary lows is but a bear-market rally. Enjoy the ride but be prepared to bail out at a moment's notice.